Red Hat throws suit up to Microsoft contract

Heat in the Swiss Alps

By Peter Sayer

May 27, 2009

IDG News Service

Red Hat has filed suit with the Swiss Federal Administrative Court, asking it to cancel a contract for desktop software and services that a government agency awarded to Microsoft without calling for competitive bids, the company said

The contract for standardised desktop software licenses, applications for clients and servers, maintenance and third-level support is worth an estimated 42 million Swiss francs ($39 million/£24 million) over three years.

The Swiss Federal Bureau for Buildings and Logistics said it awarded the contract directly to Microsoft because for technical reasons, no other bidder could meet the requirement, and there was no adequate alternative available. In those circumstances, Swiss law allows government agencies to award contracts without seeking competitive bids.

However, there are alternatives to the Microsoft software and services - and other government bodies including the Swiss Federal Agency for Computer Sciences and Telecommunications and the Swiss Federal Institute for Intellectual Property (IGE) are already using them, according to Red Hat, which supplies enterprise Linux software that competes with some of the Microsoft offerings.

Open-Xchange, a supplier of open-source groupware that can be linked to Microsoft Outlook, is also seeking to overturn the contract.

"We have alternatives to what Microsoft is offering, so at least we should have a chance at the bidding process," said Frank Hoberg, founder of Open-Xchange and executive vice president of sales and marketing.

The contract awarded to Microsoft was a renewal of an existing one - but, said Hoberg, "The IT landscape changes so rapidly, it makes sense to have the freedom to change components without lock-in."

"Open source is a good alternative because it is based on open standards and open APIs so that all these components can interact with no lock-in," he said.

Sixteen other companies, mostly Swiss or German software developers or systems integrators, have also joined the action, Red Hat said.

The Bureau for Buildings and Logistics offers advice on construction and procurement of buildings, and has a team of legal advisers who offer guidance on public procurement processes to other organisations.